Easily Register Charges

Companies are required to complete registration of charges within 30 days of creating a security interest on its assets. IndiaFilings offers an easy process for creating charges from Rs.4899/-

Easily Register Charges

From Rs.4899 /- all inclusive fees
EMI: Rs.437 for 12 months*

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Charge Creation & Satisfaction

Companies Act, 2013 defines "charge" as an interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage. Hence, charge is a type of security created on some property of the company to secure company lent. Charge can be fixed if it's attached to a specific item of property (for example land); a floating charge is created when charge is created over changing assets (for example cash, receivables). It is the duty of every company to register with the Registrar of Companies specific charges created by the company on its assets. The purpose of registration of charge is to provide public notice to those who contemplate giving credit to the company on how far the property of the company is encumbered.

As per Companies Act, companies are required to file particulars of a charge within 30 days of the creation thereof, otherwise the charge is void against the liquidators and the creditors of the company.

IndiaFilings is the leading business services platform in India, offering a variety of services like charge creation, company registration, trademark filing, GST registration, income tax filing and more. IndiaFilings can help you register charges with the Registrar of Companies. The average time taken to file for registration of charges is about 5 - 11 working days, subject to government processing time and client document submission. Get a free consultation on procedure for charge creation by scheduling an appointment with an IndiaFilings Advisor.

Creation and Satisfaction of Charges

Register of Charges

Companies Act, 2013 makes it mandatory for all companies having created any charge to keep a register of charges in the prescribed format at the registered office of the company.

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Certificate of Registration

When a charge is created and filed with the Registrar, the Registrar of Companies would issue a certificate of registration of charge to the person in whose favor the charge is created.

Non-Registration

As per Companies Act, 2013, non-registration of a charge makes the company and officers of the company liable for fines and punishment.

Charge Modification

In case the terms, conditions, extend or operation of a charge created on a company and filed with the Registrar is changed, then the company must file for modification of the charge.

Charge Satisfaction

When the charge created on a property or asset of a company is satisfied in fully, the company must give intimation to the Registrar on satisfaction of the charge.

Identity and Address Proof

Identity and address proof will be required for all directors and shareholders of the company to be incorporated. In case of Indian nationals, PAN is mandatory. For foreign nationals, apostilled or notarised copy of passport must be submitted mandatorily. All documents submitted must be valid. Residence proof documents like bank statement or electricity bill must be less than 2 months old.

Registered Office Proof

All companies must have a registered office in India. To prove access to the registered office, a recent copy of the electricity bill or property tax receipt or water bill must be submitted. Along with the utility bill, rental agreement or sale deed and a letter from the landlord with his/her consent to use the office as a registered office of a company must be submitted.

Documents Required for Proprietorship Registration
How many people are required to start a Proprietorship?
Only one person is required to start a Proprietorship and a Proprietorship can have only one promoter.
What are the requirements to be a Proprietor?
The Proprietor must be an Indian citizen and a Resident of India. Non-Resident Indians and Persons of Indian Origin can only invest in a Proprietorship with prior approval of the Government of India.
What are the documents required to start a Proprietorship?
PAN Card for the Proprietor along with identity and address proof is sufficient to start a Proprietorship and obtain other registration, as applicable or required.
What is the capital required to start a Proprietorship?
There is no limit on the minimum capital for starting a Proprietorship. Therefore, a Proprietorship can be started with any amount of minimum capital.
How will IndiaFilings help me start a Proprietorship?
An IndiaFilings Associate will understand your business requirements and help you start a Proprietorship by obtaining the relevant registrations. IndiaFilings will help obtain the necessary registrations to help the Proprietor open a bank account in the name of the business, thereby proving an identity for the business.
How to open a bank account for a Proprietorship?
To open a bank account for a Proprietorship, Reserve Bank of India mandates that the proprietor provide two forms of registration for the Proprietorship along with the PAN Card, identity proof and address proof of the Proprietor. The two forms of registration can be any two of the following: service tax registration, MSME registration, VAT/TIN/CST registration, shop & establishment Act registration, Professional license, Chartered Accountant certificate or others as provided in the RBI Know Your Customer norms.
Will my Proprietorship firm have a separate legal identity?
No, the Proprietorship firm and the Proprietor are one and the same. The PAN Card of the Proprietor will be the PAN Card of the Proprietorship business.Therefore, there will be no separate legal identity for the business. The assets and liabilities of the Proprietorship business and the Proprietor will also be one and the same.
Will my Proprietorship firm have a Certificate or Registration?
Proprietorship firms do not have a Certificate of Incorporation or Certificate of Registration. The identity and legitimacy of a Proprietorship firm is established by registering with the relevant or applicable Government authorities.
How to register the name of a Proprietorship?
There is no registry or regulation for the registering the name of a Proprietorship. Therefore, proprietorship firms can adopt any name that do not infringe on registered trademarks. Since there are no registry or regulation for registering the name of a Proprietorship, the only way to ensure exclusive use of the business name is to obtain a trademark registration of the business name.
How can I transfer my Proprietorship?
A business operated by proprietorship firm cannot be transferred to another person, unlike a Limited Liability Partnership or a Private Limited Company. Only the assets in the Proprietorship can be transferred to another person through sale. Intangible assets like Government approvals, registrations, etc., cannot be transferred to another person.
Can other people invest in a Proprietorship?
Proprietorship firms are business entity that are owned, managed and controlled by one person. So Proprietorship firms cannot issue shares or have investors.
What are the annual compliance requirements for a Proprietorship?
Proprietorship will have to file their annual tax return with the Income Tax Department. Other tax filings like service tax filing or VAT/CST filign may be necessary from time to time, based on the business activity performed. However, annual report or accounts need not be filed with the Ministry or Corporate Affairs, which is required for Limited Liability Partnerships and Companies.
Is audit required for a Proprietorship?
It is not necessary for Proprietorships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criterion.
Can I later convert my Proprietorship into a Company or LLP?
Yes, there are procedures for converting your Proprietorship business into a Company or a LLP at a later date. However, the procedures to convert a proprietorship business into a Company or LLP are cumbersome, expensive and time-consuming. Therefore, it is wise for many entrepreneurs to consider and start a LLP or Company instead of a Proprietorship.
SIMPLE & TRANSPARENT PRICING

Basic

Rs.4899/-
all inclusive fees
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Filing for registration of charges. Inclusive of GST.

From Rs.4899 /- all inclusive fees
EMI: Rs.437 for 12 months*

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From Rs.7899 /- all inclusive fees
EMI: Rs.705 for 12 months*

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Premium

Rs.12899/-
all inclusive fees
CHECKOUT

Filing for satisfaction of charge. Inclusive of GST.

From Rs.12899 /- all inclusive fees
EMI: Rs.1152 for 12 months*

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How we help with charge creation & satisfaction

IndiaFilings.com can help you file for registration, modification or satisfaction of charges.

Free Consultation

Got questions? Request a call from an IndiaFilings Business Advisor.

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Engagement Advisory

A Business Expert will review the loan documentation and the Articles of Association to understand the background of the Company prior to beginning the process. The review would take 1 - 3 working days.

Board Resolutions

Once you obtain an understanding of the procedures involved in charges management, our Experts will draft the necessary Resolutions for the procedure.

Filing

Once the Board Resolutions are passed, our Experts will prepare and file the necessary documents with the Ministry of Corporate Affairs to complete the charge registration or modification or satisfaction.

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